Original title: China-US audit supervision cooperation agreement boots landing in China concept stocks passive delisting to reduce pressure
An important step has been taken in the issue of audit supervision of Chinese concept stocks, which has attracted much attention. Recently, the official website of the China Securities Regulatory Commission showed that the China Securities Regulatory Commission, the Ministry of Finance and the US regulator signed an audit supervision cooperation agreement and will start related cooperation in the near future. Regarding the main content and significance of this cooperation, and whether it means that the risk of delisting Chinese concept stocks from the United States has been lifted, the relevant person in charge of the China Securities Regulatory Commission answered reporters’ questions. Among them, the relevant person in charge of the China Securities Regulatory Commission said that the signing of the cooperation agreement is in line with the expectations and expectations of the market. If the follow-up cooperation can meet their respective regulatory needs, it is expected to solve the audit supervision problem of Chinese concept stocks, thereby avoiding passive delisting from the United States.
Audit supervision issues are expected to be resolved
With the signing of the Sino-US audit supervision cooperation agreement, the audit supervision problem of China concept stocks is expected to be solved.
According to information released on the official website of the China Securities Regulatory Commission, the China Securities Regulatory Commission and the Ministry of Finance signed an audit supervision cooperation agreement with the American Public Company Accounting Oversight Board (PCAOB) on August 26, mainly on the daily inspection and law enforcement investigation of the cooperation between the two parties on relevant accounting firms. The specific arrangement stipulates important matters such as the purpose of cooperation, the scope of cooperation, the form of cooperation, the use of information, and specific data protection.
First of all, the principle of reciprocity is established. The terms of the agreement are equally binding on both parties. Both China and the United States can conduct inspections and investigations on relevant firms within the jurisdiction of the other party in accordance with their statutory duties. The requested party shall try its best to provide adequate assistance within the scope of law. .
In addition, the scope of cooperation is clarified, and the scope of the cooperation agreement includes assisting the other party to carry out inspections and investigations of relevant firms. Among them, the scope of assistance provided by the Chinese side also involves some Hong Kong firms that provide audit services for China Concept Stocks and whose audit manuscripts are stored in the mainland.
The relevant person in charge of the China Securities Regulatory Commission pointed out that the direct object of audit supervision is the accounting firm, not the listed company it audits. Judging from the international practice of cross-border audit supervision cooperation, the regulatory agencies in the place of listing generally select some accounting firms for inspection every year, and randomly check audit projects that are representative or have potential audit quality risks among the listed companies audited by the audited firms. Validated to assess the quality of the firm’s audit work. The same is true for China-US audit supervision cooperation, which does not require annual inspection of all US-listed companies’ audit projects.
Regarding the question of “Does the conclusion of the Sino-US audit supervision cooperation agreement mean that the risk of delisting Chinese stocks from the US has been lifted?”, the relevant person in charge of the China Securities Regulatory Commission said that the signing of the cooperation agreement marks that the two sides will strengthen cooperation to solve the problem of Chinese stocks. The issue of stock audit supervision has taken a key step, which is in line with the expectations and expectations of the market. If the follow-up cooperation can meet their respective regulatory needs, it is expected to solve the issue of China concept stock audit supervision, so as to avoid passive delisting from the United States.
Over 280 Chinese concept stocks benefited
The signing of the Sino-US audit and supervision cooperation agreement has directly benefited more than 280 Chinese concept stocks.
After the news of the signing of the cooperation agreement was disclosed, the Chinese concept stocks saw a general rise that night, and the Hang Seng Technology Index futures hit the daily limit. However, following that, Fed Chairman Powell hinted that he would not cut interest rates soon, saying that the rate of interest rate hike in September depends on the overall economic data, and may require the implementation of a monetary policy that is restrictive to economic growth for a period of time, and it is inevitable to face some pain in the future.
Affected by the news, the three major U.S. stock indexes began to plummet, all falling by more than 3% as of the close, and Chinese stocks also fell. According to the statistics of Oriental Fortune Choice, as of now, there are more than 280 Chinese stocks listed in the United States, and 13 Chinese companies have listed in the United States since the beginning of this year.
The relevant person in charge of the China Securities Regulatory Commission also said that with the gradual deepening of the two-way opening of China’s capital market, the cross-border listing of enterprises and the cross-border business development of accounting firms are becoming more and more frequent. At present, more than 200 Chinese companies are listed in the US capital market. , there are more than 30 domestic accounting firms registered with PCAOB, which can provide audit services for Chinese companies listed in the United States. In order to perform the audit and supervision duties of the above firms, PCAOB needs to establish cooperative relations with Chinese regulatory authorities and implement cross-border regulatory cooperation. Similarly, if Chinese regulators need to implement audit supervision on US accounting firms within their own supervision, they must also do so through the supervision cooperation mechanism. Retaining the listing of Chinese concept stocks in the United States is beneficial to investors, beneficial to listed companies, and beneficial to both China and the United States. It is a win-win institutional arrangement.
Economist Song Qinghui told a reporter from Beijing Business Daily that the signing of the Sino-US audit supervision cooperation agreement will help reduce the risk of delisting of Chinese stock companies, which means that Sino-US cross-border supervision cooperation has taken an important step and released the market. Positive signal.
Peng Wensheng, chief economist of CICC, also said that if the Sino-US audit supervision cooperation agreement finally achieves substantial progress, it will help alleviate market pressure and the delisting risk of some Chinese concept stocks, and help protect investors’ rights and interests. “In the medium and long term, it will help maintain the smooth flow of cross-border financing channels for Chinese companies and promote overseas financing of innovative companies, which is beneficial to listed companies, investors and both China and the United States.” Peng Wensheng said.
Beijing Business Daily reporter Ma HuanhuanReturn to Sohu, see more
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